Los Angeles daily herald., 1887-04-29
EASTERN.
Railroad Inquisition Pro.
ceedings.
APPOINTMENT OF J. H. POLK
Efforts to Save the Old Ship Hart
fOrd-President's Pr0clama-
tiOn-A Miser's Hoard.

Associated Press Dispatches to the HERALD
New York, April 2S. rhe inquisition
into the workings and financial manage.
ment Of all railroads that have received
aid from the government in bonds, was
resumed to-day by the commission ap-
pointed by the President. Charles Fran
els Adams occupied the witness chair
end said he had been President OF tbs
Union Pacific road three years and knew
great deal Of the road and its manage
ment and workings during his Presidency.
He had heard vague stories that Direct.
ors Gould, Dillon and Ames had so con.
Quoted affairs that they were in debt to
the company. Adams had investigated
this charge, but he was not permitted to
state his conclusions. Adams exam.
ined the affairs Of the Denver and
South Park, which was built
by Governor Evans of Colorado.
Governor Evans has bad no come ction
with the Union Pacific, and did not
know whether the construction books
had been transferred to the Union Pa
ciic. Adams had heard who made the
bargain which transferred Governor
Evans road to the Union Pacific, but
did not know who it was. Evans road
was built to satisfy o famous mining
boom, and it carried men and tools to
the spot where holes had been dug in
the ground ard called "mines." When
the boom collapsed, as every one knows
it did, said Adams, the road collapsed.
I. has lost money every year since. The
net loss in operating that road last year
was 100000. The ups and downs in
Colorado ara such that | do not think
the future Of this branch is hopeless ii
they strike good mine or new mining
country aud was ungrateful if it did not
go into their schemes, and then de-
nounced the road for its recklessness
when one OF them failed. Adams did
not know of an instaI ce where direct.
or, officer or employe of the Union Pa
ciio had any interest in any contract
with the Union Pacific. The last divi-
dend Of the road was declared March,
1884. The net earnings of the road for
the past three years had been devoted
TO IMPROVING PROPERTY.
The floating debt touched its highest
July l, 1884. 1t was then $78, 600, 900.
Mr.. Adams had vouchers for all ex.
pepses, and thought the office would
stand a great deal of investigation ON
that score. There was no inclination to
legislate against tue Union Pacific by
State Legislatures and their tax was
enormous, being 81, 100, 600 per year.
EFFECT OF SMALL BRANCH LINES.
Adams could not tell the first cost Of
the Union Pacific. He did not know
anything of the affairs Of the road until
1880. He held that there must be q
time when he had taken the road and
accepted it as ON accomplished fact, and
that period was fixed at 1880. He had
rather avoided it prior to that time, as
the road was built in the most extrava--
giant manner possible. The branch sys.
TEN of the Union Pacific had been elab-
Grated at an enormous expense, and
every dollar Of that money might just
as well have been paid into the pockets
of the stockholders in dividends.
Branches of the road were paying, so il
would seem, for whilst they made the
deficits, it was fact that they fed the
main line with the business on which
large profits were made. Adams had
calculated that the Union Pacific was re-
ceiviug about $5, 900, 900 from its branch
system. The company bad gone into
outside enterprises, not always success
full. The road was driven into schemes
to develop thiscountry without industry
by press and people. They clamored Anc
cried that the road was not enterprising